The International Monetary Fund mission to Pakistan ended on March 11, 2026. Iva Petrova led the team. They held meetings in Karachi and Islamabad. They also used virtual sessions. The discussions ran from February 25 to March 11.
The mission did not produce a staff-level agreement. The third review of the Extended Fund Facility stays open. The second review of the Resilience and Sustainability Facility also remains unfinished.
Both sides achieved real progress. However, several points still need work. For example, they must study the full effects of the recent Middle East conflict. Therefore, talks continue in the coming days.
Key Impacts Being Studied
The conflict could increase energy prices quickly. It may also create pressure on Pakistan’s balance of payments. In addition, the country might need more external financing.
Program Performance Through February
Pakistan met most EFF commitments until the end of February 2026. Fiscal discipline remained strong. Public finances improved steadily. The State Bank maintained tight monetary policy. This policy helps guide inflation toward its target. Energy sector reforms moved forward, although progress was gradual.
Attention to Global Risks
Global conditions look uncertain right now. Because of this, the mission focused on external risks. Energy import costs could rise further. The balance of payments faces possible strain. These changes might increase the need for outside support.
Positive Note on Climate Efforts
The IMF praised Pakistan’s work under the Resilience and Sustainability Facility. These steps build stronger protection against climate shocks. Moreover, the facility supports the main EFF objectives.
Expected Timeline and Funds
Technical talks resume soon. If both sides clear the remaining issues quickly, the IMF Board can approve the review. Pakistan would then receive about one billion US dollars from the Extended Fund Facility. It would also get roughly two hundred million US dollars from the Resilience and Sustainability Facility. Both payments should arrive by the end of April 2026.
Overall Outlook
The current delay does not signal a major problem. Both the IMF and Pakistani officials called the discussions constructive. They expect to resolve the open points without long delays.
